Edmond de Rothschild REIM acquires two commercial property investments in Dresden

27th May 2021

Edmond de Rothschild REIM and BNP Paribas REIM Germany have acquired two commercial properties in the centre of Dresden for the Real Value Fund close to the historic city centre. The Real Value Fund is a German real estate special fund for institutional investors, jointly launched by BNP Paribas REIM Germany and Edmond de Rothschild REIM (formerly Cording Real Estate Group) in 2015. The parties have agreed not to disclose the purchase price.

One of the properties is a six-storey building and, with its modern office space, is considered one of Dresden’s best properties. Built in 2008, it provides around10,600 square metres of space, of which approximately 8,800 square metres is high-quality offices, let to the building’s main tenant who has a strong credit rating thus accounts for around three quarters of the annual income. The remaining, retail, space is let to nine commercial tenants. A total of 227 parking spaces, within the building's underground car park are available to tenants.

The property is fully let, the average remaining term of all leases is four years (WALT).

The second investment, a V-shaped property, was built in 1996. The total area is around 9,200 square metres, which is used as office and medical practice space. With six commercial tenants, the property is fully let. Fifty parking spaces are available in the building's underground garage. The main tenant of the property is a public sector company that contributes around 60% of the rental income. The average remaining term of the leases is 6.2 years (WALT).

The Real Value Fund invests in commercial real estate in Germany and pursues a manage-to-core/value-add strategy. Following this transaction, the fund holds a total of seven properties and manages the deposits of seven institutional investors: two insurance companies, two pension funds, one pension scheme and two banks. The fund will be expanded further in the near future.

The performance of the fund in the past financial year was 16.5 % according to the BVI method and an average of 9.3 % per year since the fund's launch.

Hogan Lovells acted as legal advisor to the buyer and CBRE as technical advisor.